US dairy prices seen to increase as exports rebound

The annual average price of US milk in 2010 is expected to increase US$4 per cwt, which is aided by the continued recovery in dairy product exports, according to the USDA.

Dairy cash receipts are predicted to increase over US$7 billion in 2010, while the number of milk cows is forecast to decline 228,000 heads from 2009. Milk per cow is forecast to increase 379 pounds, resulting in an anticipated decline of 1.3 billion pounds of milk sold to plants.

Cattle cash receipts are expected to increase US$2.5 billion. The annual average price for cattle is forecast to rise about US$6.22 per cwt. Receipts from calves are forecast to rise about US$300 million, reflecting a slight increase (3 million pounds) in veal production and an almost US$7-per-cwt increase in price.

In 2010, a cheaper dollar combined with a recovering global economy is expected to result in an almost 8% increase in US beef exports. Hog receipts are expected to increase as a slight decline (2.8%) in pork production is more than offset by a US$3.77-per-cwt increase in the price of pork.

Meanwhile, slight annual increases are expected in 2010 for poultry and egg receipts. Small increases are expected in the production of broilers (1%) and eggs (0.6%) for sale. Price increases are anticipated for broilers (0.2 cent per lb), turkeys (2.8 cents per lb), and eggs (2.3 cents per dozen).